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Sustainable energy for Development: Access to finance on renewable energy and energy efficiency technologies for Bangladesh

Kundu, Nobinkhor (2014): Sustainable energy for Development: Access to finance on renewable energy and energy efficiency technologies for Bangladesh.

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Abstract

Bangladesh will achieve considerable success in acceleration of economic growth of course need for sustainable energy for development (SED). Renewable or ‘green’ energy is now at forefront of the country’s priorities for environmentally sustainable economic progress. The Power Division under the Ministry of Power, Energy & Mineral Resources (MPEMR) has declared a “Renewable Energy Policy of Bangladesh” and under the Companies Act, 1994, the GoB, is establishing an institution named “Sustainable Energy Development Authority” (SEDA).

At present Bangladesh takes the different financing models that have been developed and tested for renewable energy projects in urban and rural communities and energy efficiency improvement projects. Bangladesh Bank (BB) has developed an incentive scheme for concessional refinancing for small solar energy, bio-gas plants and Effluent Treatment Plants (ETP). These are recent initiatives on their part and Banks are yet to take full advantage of such concessional refinance.

To analysis primary data collected for used cross sectional study to be considered about allied factors for renewable energy especially solar energy. A structured questionnaire was prepared in the light of the objectives of the study that was filled up by direct interview. The multivariate techniques viz., multiple logistic regression models, will be used to identify the inputs significant for sustainable energy for development in Bangladesh that is accelerating economic growth of a nation. Software packages Eviews - 5.1 have built-in routines to estimate the logit model at the individual level.

Logistic regressions have been presented with the dependent variable as an indicator of the probability of being in generate RE and EE. Dependent variables dummy of RE and EE (= 1, if a generate RE and EE is full, otherwise under) have been included. The expected sign of explanatory variables coefficients are positive and or negative respectively. Thus, other things remaining same, if high cost RE/EE technologies up to become low cost, each stakeholder will purchase RE/EE technologies. However, together all the regressors have a significant impact on the log of RE/EE, whose p-value is about 0.0000, which is statistically significant.

We are looking at different sources of financing on both RE and EE investment decisions. Overall, financial institutions will aim to create a package that includes the total finance amount and the repayment terms, the interest rate, the repayment schedule and any guarantees or securities. When successful, these new approaches could be capable of triggering the involvement of commercial banks. Point of view of banking and financing institutions and risks associated with renewable energy (RE) and energy efficiency (EE) technologies for sustainable energy for development (SED).

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